The star has donated the entirety of his £25k award cash to the Music Venues Trust, which works to save the UK's grassroots concert spaces.
Fender was given the prize on October 16 as his new release People Watching was named the outstanding release of the past year.
He has decided to give the cash to the trust, in appreciation of the vital role grassroots venues fulfilled in his early career.
"I couldn't be pursuing my current career if it weren't for all the gigs I did around the area, and elsewhere, when I was beginning," said Sam Fender. "These venues are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have permanently closed – approximately 16% of the entire UK sector.
Over the past year, well-known musicians such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to support the industry, by adding a small levy to their ticket costs, which goes to help independent venues.
Sam Fender also participated, raising in excess of £100,000 on his live tour to help numerous local spots across Britain.
The donation assisted venues that were confronting imminent closure due to difficulties caused by floods, fire incidents and family tragedies, as well as licensing issues, court cases and neighbor objections.
Some locations obtained financial assistance in upgrading amenities and technical equipment that directly benefitted musicians and concertgoers.
"The concept that funds from performances in big venues backs the local stages, where it begins for artists like me, is just common sense," Fender has said.
Fender is among several artists to donate his Mercury Prize funds to good deeds.
In they won the award in the mid-90s for their record Different Class, frontman the singer stated that the group would donate their cash to the organization the charity.
During 2002, musician Ms Dynamite split her award across several good causes, such as the NSPCC and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was a child and they required new equipment," the artist shared with outlets.
Previously, the band contributed their funds to the local youth club that supported their act, in addition to other grassroots music organisations.
Additionally 1994 winners M People contributed their prize to a MS organization after a friend was diagnosed the illness.
"Receiving the award was quite enough," remarked vocalist Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our victory impacted another person's life."
In the past week, the MVT revealed it had protected a couple of grassroots venues in the South East, by placing them under public stewardship.
The first in that area and the other in that location were purchased under the community ownership program, which is funded by Arts Council England and enthusiasts who buy "shares" in the properties.
